George Turner: Australia’s first treasurer John Hawkins1 The following article is the first in a series of biographies of Australia’s federal treasurers. George Turner, a former Victorian treasurer and premier, was Australia’s first treasurer, and despite battling ill-health brought down the first four federal budgets. He was a cautious treasurer whose budgets were balanced, and he limited federal expenditure. Revenue was raised from somewhat protectionist tariffs, and most of it was redistributed to the states. Turner was so widely respected for his diligence and competence that the leaders of all three major parties of the time reputedly offered him the post of treasurer. 1 The author is from Domestic Economy Division, the Australian Treasury. Comments and support from Amy Burke, Steven Kennedy and Carol Murphy are appreciated. The views in this article are those of the author and not necessarily those of the Australian Treasury. 59 George Turner: Australia’s first treasurer Introduction The Right Honourable Sir George Turner, PC, KCMG, was Australia’s first treasurer, and brought down the first four federal budgets.2 Manning Clark said of him that ‘balancing the books was his great passion in life’.3 This made him an ideal choice for the job of treasurer, at a time when it was more of an accounting role than an economic one. Competent rather than charismatic, he was so admired for being ‘hardworking, conscientious and reliable’4 that all the party leaders and prime ministers of the time (the Protectionists Barton and Deakin, the Free Trader Reid and Labor’s Watson) reputedly offered him the job as treasurer. Turner’s career before Federation George Turner was born in Melbourne on 8 August 1851, the son of English immigrants. His father was a cabinet-maker, but in a literal rather than political sense. George’s exposure to politics came early, as at the age of 14 he started work for John Edwards, a solicitor who was a member of the Legislative Assembly. He completed an articled clerks’ course and was admitted as an attorney in 1881. He married English-born Rosa Morgan in 1872 and was ‘fortunate in finding a partner who assisted him at every step and constantly pushed him forward.’5 Turner’s political career took off quickly. He was elected to St Kilda City Council in 1885, served as mayor in 1887-88, and by 1889 was representing St Kilda in the Victorian parliament as a Liberal Protectionist MLA. He quickly rose to the ministry, being appointed Commissioner for Trade and Customs in 1891 and also Solicitor-General from 1892. 2 He had also presented six Victorian budgets. 3 Clark (1981, p 122). This rather dour characterisation is shared by other historians. Crisp (1990, p 190) writes ‘nor was George Turner … a man of lively imagination’. McMullin (1991, p 136) suggests ‘no Victorian premier has had less charisma’. Rickard (2006, p 109) commented ‘few political figures have been so celebrated for their dullness’. Similar views were expressed by his peers. Deakin writing anonymously in 1905 said ‘his colourless policy fitted a colourless personality’. He later described Turner, in his posthumously published memoirs (1944, p 66), as ‘the average man … in dress, manner and habits exactly on the same level as the shopkeepers and prosperous artisans who were his ratepayers and constituents … as a speaker he was as plain, commonplace and even slangy as Reid, but had none of the rich humour … he had no enthusiasms’. A contemporary journalist recollects Turner as ‘not a profound or original thinker’; Campbell-Jones (1935, p 105). 4 In the words of Deakin’s biographer, La Nauze (1965, p 217). Deakin himself (1944, p 66) said that ‘his faculty of work was enormous, his love of detail great’. Another contemporary, and future treasurer, Joseph Cook described him as ‘one of the most useful public men Australia has ever known’. 5 Deakin (1944, p 68). 60 George Turner: Australia’s first treasurer When the government fell in the depths of the 1890s depression, Turner reluctantly became Opposition Leader (with the support of Alfred Deakin and Isaac Isaacs).6 In 1894 a successful vote of no confidence led to an election which made Turner Premier of Victoria. He also took the treasury portfolio. The Victorian economy was still suffering very high unemployment and net emigration. The government had a large budget deficit, which Turner set about correcting. He cut public works and spending on education and defence, and introduced a graduated income tax.7 Following a royal commission, he amalgamated local savings banks into the State Savings Bank of Victoria in 1896. In mid-1897 Turner, and the other premiers, attended Queen Victoria’s diamond jubilee, and he was appointed a privy counsellor and received a KCMG and honorary degrees from Cambridge and Oxford. He returned to an easy victory in the October 1897 election, with Labor support. During his second term, the budget deficit was eliminated. However, when some country Liberals and disaffected radicals crossed the floor in November 1899, Turner’s government fell. He regained office at the November 1900 poll, and introduced legislation for old age pensions, before resigning in February 1901 to enter federal politics. While Premier, Turner had been a supporter of Federation. He topped the poll to represent Victoria at the 1897 federation convention.8 While an influential member of the finance committee, illness and an overseas trip meant he missed many of the sessions. He proposed a new capital be created in a territory carved out of New South Wales. Long a supporter of Edmund Barton, he argued (perhaps decisively) for his appointment as Australia’s first Prime Minister.9 6 An anonymous obituary (The Age, 25 April 1916, p 7) remarks that ‘never did a politician accept the leadership of a party with greater reluctance’. 7 These were characterised as ‘desperate remedies’ in that anonymous obituary, but appear to have been accepted as necessary by the public. 8 Turner also represented Victoria ex-officio at the Premiers’ Conferences on federation in 1895 and 1899. 9 The first Governor-General, the seventh Earl of Hopetoun, had initially approached William Lyne to form a government, apparently on the grounds he was premier of the largest state. This ‘Hopetoun blunder’ as it became known (the expression originated with Deakin) was an odd choice, given Lyne’s opposition to federation; La Nauze (1957). Despite Lyne offering Turner a ministry, he spurned Lyne’s advances. Campbell-Jones (1935, p 23) believes Turner ‘told him flatly that he ought to advise the Governor-General to send for Sir Edmund Barton’. When Lyne was unable to form a credible ministry, Barton was commissioned. 61 George Turner: Australia’s first treasurer Turner’s first term as treasurer Barton appointed Turner as treasurer in his first (interim) cabinet and reappointed him after the first federal election in 1901, when Turner was elected unopposed as the member for Balaclava. (There are some reports that Turner was not necessarily Barton’s first choice.10 Barton may have sounded out former NSW treasurer, and chair of the 1897 federation convention’s finance committee, William McMillan, who apparently preferred to be deputy leader of the Free Trade Party than join the protectionist Barton ministry.) Speaking to the press, Barton explained ‘the Treasurer will superintend all matters relating to customs and finance, commonwealth loans, the taking over of state loans and cognate matters’.11 Using personnel seconded from state treasuries, Turner set to work before his department was formally established. George Allen, with whom Turner had worked at the Victorian Treasury, was appointed Secretary of the Treasury in July 1901 with four other staff. By January 1902, Treasury had taken on another four staff and all bookkeeping functions were then performed in-house. By 1903 staff had reached almost twenty, including four future secretaries.12 Turner established the office of Auditor-General. He described Treasury’s work as ‘being chiefly ledger keeping and the inspection of accounts’.13 In this they were quite rigorous; in the 1901-02 Budget, government expenditure was budgeted to the pound as £3,777,207. Turner opened his first Budget speech (8 October 1901) by referring to the greater difficulty of preparing a federal compared with a state budget, particularly in gathering information on a consistent basis. He stressed the need to avoid ‘extravagant expenditure’, despite the abundant revenues, arguing that this might starve the states of funds so that ‘they will feel inclined to curse rather than bless federation’. Much of the speech involved assurances that the proposed expenditure by the federal government was comparable to that of the states on the functions which they transferred. His second budget speech (23 Sept 1902) contained a lengthy discussion of the expenditures and revenues of the post office. The revenues and expenditures in the states before and after federation remained a large part of his third budget speech (28 July 1903), although Turner foreshadowed moves away from this ‘bookkeeping’ 10 This claim is made by Barton’s recent biographer in Bolton (2000, p 218). A letter dated 16 September 1900 from Barton to Deakin (National Library of Australia, Deakin Papers, 1540/14/1) shows that Barton had spoken to McMillan (and another free trader, Edward Pulsford MLC) about a ministerial position but Barton described the talks as ‘unpromising’. 11 Reported in Sydney Morning Herald (31 December 1900, p 7). 12 Together with Allen, they provided almost fifty years of leadership; Treasury (2001). Allen served as secretary, and James Collins as his deputy, for the whole of Turner’s time as treasurer. 13 Hansard, 23 January 1902. 62 George Turner: Australia’s first treasurer procedure to treating the federal government as having ‘one pocket and one purse’.